In the context of recent budget 2018 19 announcements what does lsquo Standard deduction rsquo mean ........

Economic Affairs Tax System

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In the context of recent budget 2018-19 announcements, what does ‘Standard deduction’ mean?

Standard deduction is the reduction in Income Tax rates to increase the savings of the households.

It is the portion of income that is not subject to tax and that can be used to reduce a taxpayer's tax bill.

It is the deduction in the allowances paid for transport and as medical reimbursements.

Standard Deduction is the amount of tax revenue foregone on account of exemptions.

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Explanation:

Second option is correct.
The standard deduction is the portion of income that is not subject to tax and that can be used to reduce a taxpayer's tax bill. A standard deduction can only be used if the taxpayer does not choose the itemized deduction method of calculating taxable income.